Requirements
- Employment relationship: employment carried out abroad on a continuous basis and as the exclusive subject matter of the employment relationship.
- Stay abroad: presence in the foreign country for more than 183 days within a 12-month period.
- Tax residence: the individual remains tax-resident in Italy.
How are the days calculated? (Circular No. 207/E/2000)
The period under consideration does not necessarily have to be continuous. It is sufficient for the employee to work abroad for at least 183 days within a 12-month period, even if that period spans two calendar years.
For the purpose of calculating the employee’s actual days of presence abroad, the 183-day count must in any case include annual leave, public holidays, weekly rest days and other non-working days, regardless of where those days were spent.
Are Benefits Included? (Circular No. 207/E/2000)
Since the remuneration is determined on a conventional basis, the actual amounts paid are not taken into account. Benefits in kind are deemed to be included in the conventional remuneration on a lump-sum basis.
Are Employee Social Security Contributions Still Considered Deductible Expenses? (Parliamentary Question No. 7-01021 of 1 February 2001)
Yes.
